Highlights
32 TWh
Singapore’s renewable electricity supply by 2035 if its current targets are achieved.
8.1 GW
Renewable electricity import capacity needed by 2035 for Singapore to be on track to achieve IEA’s net-zero power sector target.
52-58%
Potential decrease in per capita power sector emissions between 2022-2035, if Singapore aligns with the IEA’s NZE milestones.
About
This report provides an overview of Singapore’s power sector and examines the opportunities and challenges for the country’s energy transition. Additionally, the report analyses the case for Singapore to be on track with targets based on the International Energy Agency’s (IEA) net-zero emissions (NZE) milestone for a net zero electricity sector by 2045, and the ASEAN Climate and Energy Project (ACCEPT).
Executive summary
Accelerating cross-border interconnections is critical for Singapore’s net-zero target
Renewables are poised to replace gas to power Singapore in the next couple of decades, as the country increases renewable power exchanges with neighbouring countries
Dr Dinita Setyawati Senior Southeast Asia Electricity Policy Analyst, Ember
Singapore could pick up the baton for Southeast Asia’s energy transition. By investing in power system connectivity and procuring clean electricity from its neighbours, the country will promote clean energy and facilitate multilateral power trade, allowing renewables resource sharing for a more energy-secure ASEAN.
Shifting energy landscape
Singapore’s reliance on gas-fueled growth is set to change
The share of renewables will reach 40% of Singapore’s electricity generation by 2035, increasing from just 4% in 2022.
In this chapter:
Solar capacity in Singapore has expanded from just 0.01 GW in 2012 to around 0.6 GW in 2022. However, the country has also continued the trend of switching to fossil gas from other fossil-based power (such as steam plants), with plans to add a Combined Cycle Gas Turbine (CCGT) plant which will ramp up gas capacity to 11 GW by 2028.
Historically, Singapore’s power system has relied on gas imports from Malaysia and Indonesia. In 2023, gas made up 92% (53 TWh) of electricity generation, while renewables such as solar met around 2% (0.9 TWh) and bioenergy met almost 3% (1.7 TWh). Meanwhile, only 0.2% (0.1 TWh) of power was imported from the Laos-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP) in 2023.
By relying on gas to meet industrial and commercial needs, Singapore risks a fossil lock-in. This could undermine its emissions reduction efforts as well as locking in dependence on gas imports with their volatile prices. Following a blackout in 2004 and disruptions in fossil gas supply from Indonesia resulting in spiking electricity prices in 2021, Singapore is continuously seeking alternative energy supplies.
This is reflected in the latest government agenda, which aims to increase the share of renewables to meet Singapore’s growing electricity demand, envisioning its future as a renewable energy hub.
In an effort to reduce emissions – Singapore’s power sector accounts for about 40% of its total emissions – the government adopted the ‘four switches’ energy transition policy. The four switches include: increasing efficiency and use of fossil gas as the main source of electricity, deploying 2 GW of solar capacity by 2030, importing up to 4 GW of renewables by 2035 and exploring other clean energy sources like geothermal.
However, with a limited supply of domestic renewable resources, Singapore will need to make use of the renewable potential in neighbouring countries and ramp up energy imports beyond current plans to be on track to meet its net zero by 2050 target.
Singapore Green Plan 2030
Securing Singapore’s clean energy future
Regional grids and a diversified renewable imports portfolio are crucial for the country not only to decarbonise its power sector and achieve its net-zero ambitions, but also to improve its energy security.
In this chapter:
A way forward
Accelerating Singapore’s energy transition can bring benefits to the entire region
The city-state can not only secure its clean energy future but also accelerate Southeast Asia’s energy transition through renewable energy investments, grid interconnections and pioneering market instruments.
In this chapter:
Singapore’s energy landscape hinges on historical energy dependencies, ultimately leading to energy security concerns. By boosting renewable energy imports and their integration, Singapore can benefit from improving its energy resilience and securing a clean energy future.
To achieve Singapore’s ambitious sustainability goals, channelling funds from both the private and public sectors is crucial for financing renewable energy initiatives and grid upgrades. Investment challenges range from a shortage of feasible projects to regulatory barriers and fluctuating market conditions, like increasing interest rates. However, easing of policies and processes may attract new investments in clean energy and make renewable energy projects competitive for private capital. Simultaneously, international partnerships (such as GFANZ), net-zero emissions targets and laws open new pathways and are the building blocks for pouring public and private investment into renewable energy.
The decisions made by Singapore in the coming decade carry implications not only for its own future but also for the broader region’s journey towards a cleaner transition. With its substantial resources and positioning, Singapore has the opportunity and the financial muscle to fuel Asia’s clean transition and lead renewable expansion projects across the region.
Supporting Material
Methodology
Implications
In the IEA’s NZE scenario, the global electricity sector reaches net-zero emissions in aggregate by 2045. The scenario also proposes that advanced economies take the lead and reach net-zero emissions by around 2045 in aggregate.
In our calculation, we evaluate different decarbonisation paths available publicly for Singapore aimed at achieving net-zero power sector emissions by 2045. It is to be noted that these are only indicative paths as there are numerous uncertainties to consider, particularly regarding the timeframe required to advance electricity interconnection in the region.
This analysis aims to provide information to policymakers in the region and beyond on potential approaches to fulfil country-level ambitions to achieve net-zero emissions in the long term.
Methodology
Per capita power sector emissions
We calculated per capita power sector emissions using annual population data from the United Nations and the projected population growth for Singapore in 2030 (6.9 million). The emissions generated from different fuel types were calculated by multiplying generation numbers by emissions factors taken from the IPCC 5th Assessment Report Annex 3 (2014). Then, total emission numbers were divided by the population data for a given year.
Electricity mix projection
Projected emissions for 2030 and 2035 were calculated using electricity demand growth of 3% and the energy sources generation breakdown based on Singapore’s Green Plan 2030: solar capacity up to 2 GWp, switch other fossil fuels to gas and imports of low-carbon electricity. This report applies the solar photovoltaic capacity factor of 20% based on this study. Capacity for Combined Cycle Gas Turbine (CCGT) plants is calculated to be 85%, according to a paper published by ETH Zurich and an IEA report. Emissions factor for CCGT plans is calculated to be 508.21(gCO2eq/kWh) according to Ember’s electricity data explorer.
Investment costs
The investment cost for gas contracts is calculated based on the capital cost component assumption of CCGT plants, variable non fuel costs, carbon price and fuel cost from the strike price for gas of $10.025 USD mmBTU in Q1 2024 in the Japan Korea Marker Spot Market. Carbon price is calculated based on the average carbon tax rates introduced by the National Environmental Agency Singapore, at $50 SGD per tonne, between 2024 and 2030. The exchange rate used was from 17 Jan 2024, where $1 USD = $1.34 SGD.
The investment cost for solar projects is estimated at the cost of the project in Riau island, Indonesia. The investment for offshore and onshore wind projects is calculated based on preliminary financing, development financing and operational costs, in accordance with the guidelines published by the Wind Energy Investment Guidelines for Viet Nam.
IEA’s net-zero emissions milestone
The power mix breakdown for the International Energy Agency’s (IEA) net-zero emissions milestone is calculated using the annual electricity demand growth forecast of 3%. We also project gas and other fossil fuels reaching zero generation by 2045 with average annual generation reduction of 2.3 TWh between 2022 and 2045 and solar capacity reaching 8.6 GW in 2050. The capacity factor for solar generation is calculated to be 20%.
We calculate the capacity needed to generate 50 TWh of electricity in 2035 to be 8.1 GW by using 70.08% capacity factor. This capacity factor is assumed from the EMA plans to import up to 4 GW of renewables by 2035, which translates to 30% renewables electricity share, or 25 TWh.
ACCEPT’s 2050 net-zero emissions scenario
The power mix breakdown for ACCEPT’s 2050 net-zero emissions scenario is obtained from a study written by Handayani et. al (2022) financed by the ASEAN Climate and Energy Project (ACCEPT).
Acknowledgements
With thanks to Dr Yao Lixia from Energy Studies Institute, National University of Singapore, for her review. The contributions of Richard Black, Dody Setiawan and Neshwin Rodrigues in peer reviewing, along with the key roles played by Uni Lee in data validation, and the invaluable efforts of Chelsea Bruce-Lockhart in data visualisation have significantly shaped the outcome of this work. Rosamond Hutt and Ardhi Arsala Rahmani’s editing and structural enhancements were also crucial in the development of this report.
Header imageSolar panels with cityscape of Singapore
Credit: Zoonar GmbH / Alamy Stock Photo